(c) Prepare the journal entries to record the semiannual interest on July 1, 2025, and December 31, 2025. (d) If the fair value of Aguirre bonds is $308,162 on December 31, 2026, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on December 31,2025 , is a debit of $3,691.) (e) Prepare the journal entry to record the sale of the bonds on January 1,2027. Dec. 31,2026 Unrealized Holding Gain or Loss - Equity Fair Value Adjustment Jan. 1. 2027 Cash Loss on Sale of Investments Debt Investments \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline Date & & Cash Received & & \begin{tabular}{l} Interest \\ Revenue \end{tabular} & & \begin{tabular}{c} Bond \\ Discount \\ Amortization \end{tabular} & & \begin{tabular}{c} Carrying \\ Amount of \\ Bonds \end{tabular} \\ \hline 1/1/25 & & & & & & & $ & 3 \\ \hline 7/1/25 & $ & 13200 & $ & 15226 & $ & 2026 & & 3x \\ \hline 1/1/26 & & 13200 & & 15327 & & 2127 & & 3x \\ \hline 7/1/26 & & 13200 & & 15434 & & 2234 & & 3 \\ \hline 1/1/27 & & 13200 & & 15545 & & 2345 & . & 3 \\ \hline 7/1/27 & & 13200 & & 15662 & & 2462 & & 3 \\ \hline 1/1/28 & & 13200 & & 15786 & & 2586 & & 3 \\ \hline 7/1/28 & & 13200 & & 15915 & & 2715 & & 3: \\ \hline 1/1/29 & & 13200 & & 16051 & & 2851 & & 3: \\ \hline \end{tabular} 8% Bonds Purchased to Yield 10% (c) Prepare the journal entries to record the semiannual interest on July 1, 2025, and December 31, 2025. (d) If the fair value of Aguirre bonds is $308,162 on December 31, 2026, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on December 31,2025 , is a debit of $3,691.) (e) Prepare the journal entry to record the sale of the bonds on January 1,2027. Dec. 31,2026 Unrealized Holding Gain or Loss - Equity Fair Value Adjustment Jan. 1. 2027 Cash Loss on Sale of Investments Debt Investments \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline Date & & Cash Received & & \begin{tabular}{l} Interest \\ Revenue \end{tabular} & & \begin{tabular}{c} Bond \\ Discount \\ Amortization \end{tabular} & & \begin{tabular}{c} Carrying \\ Amount of \\ Bonds \end{tabular} \\ \hline 1/1/25 & & & & & & & $ & 3 \\ \hline 7/1/25 & $ & 13200 & $ & 15226 & $ & 2026 & & 3x \\ \hline 1/1/26 & & 13200 & & 15327 & & 2127 & & 3x \\ \hline 7/1/26 & & 13200 & & 15434 & & 2234 & & 3 \\ \hline 1/1/27 & & 13200 & & 15545 & & 2345 & . & 3 \\ \hline 7/1/27 & & 13200 & & 15662 & & 2462 & & 3 \\ \hline 1/1/28 & & 13200 & & 15786 & & 2586 & & 3 \\ \hline 7/1/28 & & 13200 & & 15915 & & 2715 & & 3: \\ \hline 1/1/29 & & 13200 & & 16051 & & 2851 & & 3: \\ \hline \end{tabular} 8% Bonds Purchased to Yield 10%
